Biomass consulting case studiesDue diligence for biomass procurementClient profile: Project developerClient requestAs part of its strategy to grow its interests in Japan’s renewable power sector, the client was looking to finance a biomass/thermal coal co-fired power plant in east Asia. Around 95pc of the plant’s fuel , wood pellets and palm kernel shells, will be sourced from seaborne biomass markets. The purchases were contracted out to two trading houses in northeast Asia. Argus proposed a study assessing the security of supply of biomass along the buying chain for the plant. The team provided analysis of the commercial aspects of fuel supply contracts to ensure their viability and also examined contingency plans.

Result deliveredThe report included fundamental of biomass market assessment, market analysis —demand & supply details — and purchase findings. Final report and excel data will be given to the client.Evaluation of palm kernel shell (PKS) and empty fruit bunch (EFB) markets in Indonesia and Malaysia
Client profile: Asia-Pacific industrial conglomerate

Client request
The client, a large industrial conglomerate operating in Asia Pacific, was entering the electricity wholesale market through the construction of a biomass-fired power station in Japan. The plant was to run on PKS and EFBs. The client sought to
understand:

• Current supplies of PKS and EFB from Indonesia and Malaysia
• How much PKS and EFB supplies are consumed in these two countries, and how policy and regulations affect this demand
• How much of the remaining PKS and EFB supplies are exported and supply chain infrastructure
• The outlook for PKS and EFB pricing

Result delivered
The client was provided with a report giving a clear overview of the availability of PKS and EFB for import from Indonesia and
Malaysia, and a thorough understanding of buying challenges when sourcing palm residues.